Am I Eligible for Gratuity After Company Name Changes? Seeking Advice on Next Steps

Hello, I have 6.9 years of experience in the same company, but the company has changed its name twice. According to the official records of the company registration, it shows that the company is under 5 years old. However, I have the offer letter and other documents in the old name of the company. Am I eligible for gratuity? There are two other individuals like me waiting to receive gratuity for 8 and 9 years of service.

Currently, they are claiming to be under a 5-year-old company and are rejecting the claims or offering to pay only half of the amount. Can you provide the best possible way to approach this situation?

Thank you.

At the time of shifting to the company under a new name, you should have asked for a continuity of service certificate. Your question is not elaborate as to whether there is a change in statutory coverage (like PF number/ESI number) or if you continued with the same number from the beginning. What was the total number of employees from the beginning? Was a new appointment order issued when there was a change in the company name? Were you advised to submit a resignation and be relieved from the services of the old company name? If not, then I think you can request gratuity by mentioning the total period of service. Please attach a copy of the initial appointment order, a copy of the extension letter, or a copy of the confirmation letter, whichever is applicable. In case of delay or if it is refused by your employer, you may file a case with the ACL of your employer's jurisdiction, who is the controlling authority as per the Act.

Thank you so much, sir, for helping when we needed it badly in critical situations.

PF/ESI Deductions

As per our knowledge, they didn't deduct PF/ESI earlier from the salary; they only started to deduct after registration in the new name, which is under 4 years and 3 months old now.

Employee Count and Appointment Orders

What was the total number of employees from the beginning? - More than 10 employees.

Was a new appointment order issued when there was a change in the company name? - No, they didn't issue any appointment order or any letter.

Resignation and Relieving Process

Were you advised to submit a resignation and be relieved from the services of the old company name? - No, we weren't given any update or any form of letter for this change. They didn't ask to submit any form of letter.

Company Registration Information

The only information we received was that the company was registered in the US as Inc, so they are changing to Pvt in India as per norms.

Hi,

As per the details provided by you, statutory deductions were effected only after the registration of the new company, and your employer will argue that Gratuity is not applicable as the service period is less than the eligibility criteria stipulated by the Gratuity Act. However, you may still request Gratuity with proof of evidence for employment from the beginning. If your request is refused, you can file a case with the ACL as advised earlier.

Thank you.